Top ten things I've learnt about money

Emma Roberts reflects on the 10 best things she's learnt about money since being at lovemoney.com.

Unless your parents read you credit reports and ‘Finance for dummies’ as bedtime stories when you were a child, most of us emerge into the adult world knowing a scarce amount about finances.

And I was no exception.

Having come straight from the comfortable bubble of University, the only financial issue I worried about was getting my student loan on time.

But, having worked at lovemoney.com, I have now learnt a lot of incredibly useful information about everything to do with money.

Here, I am going to share the top 10 shiny, golden nuggets of wisdom.

Credit cards shouldn’t be feared

If you’d mentioned the words ‘credit card’ to me a couple of years ago, I would have probably gasped and muttered ‘oh no, not for me, credit cards are really bad.’

Of course, I would have been basing my bad opinion of plastic on the examples of my friends, who had decided to fill their purses with a colourful collection of store cards.

Needless to say, they got in tonnes of shoe shopping-induced debt and soon had to be bailed out by their unimpressed parents.

Rachel Robson highlights four ways to pay off your credit card debt

But now I’ve learnt that credit cards can actually be very useful, if you know how to use them properly.

For instance, a 0% on new purchases credit card is an extremely effective weapon when it comes to spending.

That's because these nifty pieces of plastic offer long periods of interest-free spending. For example, the market-leading Tesco Clubcard Credit Card offers 13 months interest-free on all purchases.

Of course, as with any weapon, these credit cards need to be used carefully. You need to ensure you pay off your balance in full before the interest-free period comes to an end, otherwise the interest will come flooding in.

Luckily, there’s also another cunning card that’ll get you out of the danger zone, however - the 0% balance transfer card.

Basically, a 0% balance transfer card allows you to transfer your debts (for a fee of around 3%) and enjoy another interest-free period on your debt, while you pay it off. The Barclaycard Platinum with 16 Month BT Visa, for example, offers 16 months interest-free on all balance transfers.

But getting your hands on these cards depends on one vital factor - your credit rating.

You can’t ignore your credit rating

One of the first things you should do when thinking about your finances, is actively seek out your credit rating. And the great thing is you can do this for free if you sign up for a free credit report from Experian. Just remember to cancel your membership before the 30-day trial period is up to avoid being charged in the future.

As this video on the 5 myths that could destroy your credit rating shows, many people aren’t as clued up as they think when it comes to their credit scores and, as a result, could have a bad credit rating.

So, I’ve learnt that there’s no point hiding from your credit rating and you should check it as soon as you can. Read Get a perfect credit record to find out more.

Don’t be afraid to ditch your bank

I assumed that I would be with my current bank forever.

Your bank will do everything in its power to make money out of you. Here’s how to fight back and win!

After all, my bank looked after my money throughout my youth and provided me with a financial lifeline, in the form of a generous overdraft, while I was at University.

So the last thing I thought of doing was ditching it, but now I’m not so sure. I’ve learnt that you should always be on the lookout for a better current account, as some of them have great incentives and better rates.

Have a read of Ditch these current accounts quick to find out which banks you should dump and which ones you should hook up with.

Budgeting doesn’t have to be boring

I used to think that being on a budget to save money meant a lifetime of eating value baked beans and endless nights in.

But, the truth is, being on a budget doesn’t have to be boring.

Take my Frugal Fashion blog for instance. I found that I could get three, fashionable outfits for under £20 just by shopping at a charity shop.

What’s more, I found out loads of other fun ways to save money, such as my article on how to Live off your neighbours and my light hearted piece on 5 ways computer games can save you cash.

You should never pay full price for a meal out

Gone are the days when I used to scrimp my change to afford a full-priced meal at a restaurant.

Now, I never eat out without being armed with either a voucher or a special deal.

In fact, you should never pay full price for most things

The money-zapping power of the voucher doesn’t stop at meals out though - you can get vouchers these days for practically everything.

So before you pay full price for something, make sure there’s not a voucher waiting to hammer the price right down.

I always check out our Frugal Friday blog for a weekly injection of money saving goodness and here are my other top discount sites.

Cheap doesn’t always mean cheerful

There are some occasions when the cheapest option can actually be the worst. This rule often applies for shoes, men and budget airlines.

Take the notorious Ryanair for example. At first glance, their incredibly cheap air fares grab you in but soon after booking your flights, you realise you’ve been ripped off.

Have a read of The five worst Ryanair rip offs to see why cheap isn’t always cheerful.

The internet is your greatest financial tool

I can’t emphasise enough just how much the internet can help your finances. Not only does it allow you to easily compare financial products or allow you to do your banking online but it also saves and makes you money.

I’m a huge fan of swap sites, such as Big Wardrobe, Swap a skill and Bookmooch (for budget bookworms).

I was also thrilled to discover that you can rent loads of different things on the web, such as designer clothes and even flashy sports cars.

In fact, I was so inspired by this, I wrote You too can live like James Bond.

Your wallet can be as big as your imagination

You’re not going to make or save cash if you don’t actively do something about your finances.

Opening a savings account is a great way help your money grow, but I’ve also learnt there are also loads of imaginative ways you can save cash.

For instance, I’ve recently discovered that there are loads of smart phone apps, such as Red Laser that can save you bundles of cash.

But if gadgets send you to sleep, then you can also save money by doing simple things, many of which I highlighted in 10 lifestyle changes that will make you richer.

You should start thinking about your pension early

The thought of a pension never really crossed my mind before working at lovemoney.com, but now I know, the earlier you start thinking about your pension, the better.

Have a read of this article on how to Boost your pension by 25% to get some great tips about your pension.

**There are ways out of debt**

And finally, getting caught up in the grasp of debt can be stressful to say the least, but the great thing I’ve learnt is there are ways out of debt.

If you want to destroy your debt, have a read of The best ways to get out of debt to get some top advice.

So there you are, you should never stop learning new things about finances - after all, it’s your money so you should be in control of it.

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